April 26, 2010 (Broadband plan, reclassification, over-the-top video)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY, APRIL 26, 2010
This week's agenda http://bit.ly/bUq6mv
NATIONAL BROADBAND PLAN
FCC Has Timing Problem With Spectrum Plans
FCC Establishes Emergency Response Interoperability Center
FCC Report on Public Safety Network
A Giant Leap & A Big Deal: Delivering on the Promise of Equal Access to Broadband for People with Disabilities
Small Business and the National Broadband Plan
Private Investment and the National Broadband Plan
BROADBAND REGULATION
FCC's McDowell against reclassification, citing courts
FCC Jurisdiction: Trust in the Law
Regulating the Internet
Regulate the Internet?
Mobile Future: Proposed Network Neutrality Regulations Put Damper on Broadband Jobs, Revenue
Substantial Profits in the Broadband Ecosystem: A Look at the Evidence
TELEVISION
Bad News For Over-The-Top Video Providers Last Week
McDowell Cautions FCC About Getting Into Arbitration Business
AT&T U-verse TV Would Not Meet FCC's AllVid Gateway Requirement
OWNERSHIP
They're Calling Almost Everyone's Tune
Cash-rich tech companies avoid M&A path
Orbital Sciences buys spacecraft facility from General Dynamics
GOVERNMENT & COMMUNICATIONS
The White House unleashes AdWords against Wall Street
Seeing new media in a different lens
Undercover persuasion by tech industry lobbyists
Think Again: The Internet
CYBERSECURITY
Deputy Promoted To Head FBI's Cyber Division
Report profiles a new world for cybercrime
PRIVACY
Schumer wants info sharing guidelines for social networking sites
MORE ON INTERNET/BROADBAND
Newspaper Web Sites Draw 74 Million
26 Percent of Wired's Mobile Traffic Comes From the iPad
Google Not Suitable for Children Under 12, Says Web Censor
HEALTH
ONC envisions rural HIT 'communities of practice'
ED TECH
Put Away That Laptop: Professors Pull The Plug
Survey: 'Digital natives' need more IT support
Cell phones have much potential in classrooms
NATIONAL BROADBAND PLAN
FCC TIMING PROBLEM
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
While the Federal Communications Commission wants to reclaim broadcast (and other) spectrum for wireless as part of the national broadband plan, a bill working its way through Congress (it has already passed the House with strong bipartisan support) anticipates that the FCC will need at least a couple of years' worth of spectrum inventory- taking to figure out where it can get said spectrum. Rep Rick Boucher (D-VA), chairman of the House Communications Subcommittee, has made it clear that he doesn't want the FCC to decide from whom to take spectrum until a spectrum inventory is completed in conjunction with the National telecommunications and Information Administration, as directed by the bill. Such an inventory would take into account federal as well as private spectrum holdings. If the FCC forges ahead regardless, it will have some explaining to do to Boucher, as well as to the chairman emeritus of the full committee, John Dingell (D-MI), who has seconded Boucher's directive. Making matters even more complicated, Senate Commerce Committee Chairman Jay Rockefeller (D-WV) has told the FCC he wants action even faster than an agenda that FCC Chairman Julius Genachowski has suggested is unprecedented in its scope and aggressiveness.
benton.org/node/34708 | Broadcasting&Cable
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FCC ESTABLISHES NEW EMERGENCY RESPONSE INTEROPERABILITY CENTER
[SOURCE: Federal Communications Commission, AUTHOR: ]
On April 23, the Federal Communications Commission established its new Emergency Response Interoperability Center (ERIC) under the Public Safety and Homeland Security Bureau (PSHSB). ERIC's primary mission is to lead the development of a technical and operational framework that will support and foster nationwide operability and interoperability in wireless broadband communications for America's first responders. One of the priorities for the FCC in opening this new center will be to establish a broadly representative Public Safety Advisory Board to serve in a central advisory role to the ERIC. In addition to public safety input, ERIC will work closely with industry, commercial providers, manufacturers and standards setting groups to ensure interoperability and operability on the new network. [much more at the URL below]
benton.org/node/34697 | Federal Communications Commission | see the Order
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ECONOMICALLY VIABLE WAY TO BUILD A PUBLIC SAFETY BROADBAND NETWORK ACROSS AMERICA
[SOURCE: Federal Communications Commission, AUTHOR: ]
The Federal Communications Commission (FCC) today released a comprehensive white paper study that builds on the National Broadband Plan recommendations to create an economically viable, technically sound, and robust interoperable public safety wireless broadband network across America.
Entitled A Broadband Network Cost Model: The Basis for Public Funding Essential to bringing Nationwide Interoperable Communications to America's First Responders, the study offers a detailed analysis of how the FCC's plan for creation and funding of the network would meet public safety's needs for accessibility, reliability, and affordability, while saving the nation approximately $18 billion or more in capital and operating expenditures over a 10-year period. The plan would also ensure true interoperability for public safety across the nation, stretching beyond large cities and metropolitan areas and into rural America. [much more at the URL below]
benton.org/node/34696 | Federal Communications Commission | read the paper
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FCC ACCESSIBILITY REPORT
[SOURCE: Federal Communications Commission, AUTHOR: Elizabeth Lyle]
With broadband technologies, we have the opportunity to consider accessibility issues relatively early in the deployment process and ensure that people with disabilities share fully in the benefits of broadband. Even more, broadband "bridge[s] gaps and provide[s] opportunities that were inconceivable in the past. We cannot realize the full potential of broadband, however, unless we fully consider the needs of people with disabilities. As a threshold matter, for example, broadband needs to be defined in a way that recognizes the importance of two-way video capabilities. We also must understand and address the barriers faced by people with disabilities. This paper will first consider numerous barriers to broadband usage faced by people with disabilities, including inaccessible hardware, software, and services, and inaccessible web content. It will also identify barriers related to specialized assistive technologies that people with disabilities use to gain access to broadband services as well as barriers faced by specific populations within the disability community. Next, the paper will discuss existing private sector efforts to address these barriers, including the advances made by industry innovation and collaborative efforts. It examines how government grant programs and legal and regulatory measures address these barriers as well.
After identifying existing barriers and efforts, this paper next considers the gaps in current efforts to address accessibility for people with disabilities and the needs that must be met if we are to accelerate the adoption path for people with disabilities. [much more at the URL below]
benton.org/node/34695 | Federal Communications Commission | FCC blog | Press release | FCC blog
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SMALL BUSINESS AND THE NATIONAL BROADBAND PLAN
[SOURCE: Federal Communications Commission, AUTHOR: FCC Chairman Julius Genachowski]
In December 2009, Sen Mary Landrieu, chair of the Senate Committee on Small Business and Entrepreneurship, wrote Federal Communications Commission Chairman Julius Genachowski about small businesses and the National Broadband Plan. Especially in rural areas, Chairman Landrieu wrote, the lack of broadband is stifling small businesses. She asked the FCC to should review ways to further incentivize broadband deployment in rural areas. In February 2010, Chairman Landrieu followed up with specific recommendation she hoped to see in the broadband plan: 1) Creation of a Broadband and Emerging Technologies Coordinator at the Small Business Administration, 2) Centralized information about Federal Broadband Programs, 3) Including Broadband in SBA Entrepreneurial Development Programs, and 4) Focusing on Existing Innovation Programs.
On April 1, FCC Chairman Genachowski wrote back ensuring Sen Landrieu that the plan includes recommendations, strategies, and initiatives to empower small businesses - particularly a recommendation to foster development of a public-private partnership for small businesses. The Plan also recognizes the need for tools and training to enable small businesses to maximize the benefits of broadband. Mobile broadband will play a key role in bringing access to the areas of the nation beyond the reach of standard cable and DSL services. The Plan also recommends a major transformation of the Universal Service Fund converting it over time to broadband support and freeing up more resources to build 21st century communications networks.
benton.org/node/34694 | Federal Communications Commission
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PRIVATE INVESTMENT AND THE NATIONAL BROADBAND PLAN
[SOURCE: Federal Communications Commission, AUTHOR: Blair Levin]
Having worked for over 9 months to figure out how America could have the healthiest broadband ecosystem in the world, one consistent theme is the health of that ecosystem depends heavily -- in fact, primarily -- on private investment. If we get the implementation of the mobile piece of the Plan right, we can precipitate a massive private investment boom and build a world-leading broadband ecosystem. And if we get it wrong, we will cause our economy to suffer huge losses in wealth and jobs, our competitiveness diminished as other countries surge ahead, riding over the wireless networks of the future.
benton.org/node/34679 | Federal Communications Commission
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BROADBAND REGULATION
MCDOWELL ON RECLASSIFICATION
[SOURCE: Washington Post, AUTHOR: Cecilia Kang ]
Federal Communications Commission member Robert McDowell said Friday that he wouldn't support putting broadband services under the same regulatory regime as phone services, saying such a move would face significant legal challenge. Commissioner McDowell said that a classification of broadband Internet providers as Title II service carriers would get overturned in court. "That would start smelling to a court like arbitrary and capricious," he said. Instead, he said he supports a move by Congress to clarify the agency's authority over broadband under Title I, a category over which the agency now has only "ancillary" oversight. Commissioner McDowell added that FCC Chairman Julius Genachowski's push for new network neutrality rules appeared in trouble after the court decision. He said that it is "a myth" that broadband net access services were once regulated as a Title II Telecommunications service, pointing to a 1998 report to Congress from then-FCC Chairman Bill Kennard that he said made it explicit that Internet services were not regulated telecom services, and had said that it could even be harmful to treat them as such.
benton.org/node/34693 | Washington Post | Broadcasting&Cable
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TRUST IN THE LAW
[SOURCE: SaveTheInternet.com, AUTHOR: Derek Turner]
[Commentary] The Comcast v. Federal Communications Commission decision has called into question the FCC's authority to act in the broadband arena. But in the debate over what the FCC's next step should be, it seems that many have chosen to ignore history, describing as "radical" the legal framework for innovation and competition that Congress established for our nation's two-way communications networks. The legislative process is designed to produce laws that are flexible, that are grounded in bedrock principle, and that withstand the test of time. Our Communications Act is guided by the principles of universal service, non-discrimination, interconnection, competition and reasoned deregulation. These principles, through the framework of the 1996 Act, were intended to foster the development of a robust, advanced and competitive two-way communications market -- regardless of changes in technologies. But because of flaws in the implementation of the law, not in the law itself, some of the goals of the Communications Act have yet to be achieved, and the principles themselves are now in jeopardy.
benton.org/node/34691 | SaveTheInternet.com
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REGULATING THE INTERNET
[SOURCE: New York Times, AUTHOR: Peter Thonis]
[Commentary] Verizon answers a New York Times editorial that said, "It is untenable for the United States not to have a regulator to ensure nondiscriminatory access, guarantee interconnectivity among rival networks and protect consumers from potential abuse." The company's Chief Communications Officer answers, "Actually, the Internet and consumers have thrived. Interconnectivity occurred seamlessly, and in the very few instances of potential harm, the marketplace and the Federal Communications Commission acted quickly. Meanwhile, the Federal Trade Commission and other agencies stood ready."
benton.org/node/34690 | New York Times
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REGULATE THE INTERNET?
[SOURCE: New York Times, AUTHOR: Mike Wendy, Brent Wilkes]
[Commentary] More reaction to last week's New York Times editorial calling for the Federal Communications Commission and Congress to figure out how the agency can protect broadband consumers. Wendy, from the Progress and Freedom Foundation, concludes that "America's Internet thrives. It does so because of less regulation, not more. The FCC's plan to regulate the Internet will hurt average Americans by limiting choice and thwarting expansion of new services and options." Wilkes, Executive Director of the League of United Latin American Citizens, warns that network neutrality "could shield the companies that make billions in profits from the Internet — search engines and other providers — from contributing toward the $350 billion in investment broadband upgrades needed to handle bandwidth demands, which double every two years. That would shift these bandwidth costs exclusively — 100 percent — onto consumers and could thereby deter broadband adoption in Latino and other communities. Net neutrality could also bar broadband providers from managing, in a nondiscriminatory manner, the few bandwidth-hogging applications and services that can consume nearly all of a neighborhood's bandwidth. If and when critics identify a real problem, Congress should quickly grant the FCC the express authority to fix it."
benton.org/node/34706 | New York Times
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INDUSTRY: NET NEUTRALITY THREATENS JOBS, REVENUE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Mobile Future -- a group pushing for marketplace, rather than government, spurs to broadband deployment and adoption -- says proposed network neutrality regulations will put a damper on jobs and revenue in the broadband sector. That is according to a study by Brattle Group economist Coleman Bazelon and paid for by the group, which includes AT&T, various chambers of commerce, the Hispanic Technology & Telecommunications Partnership and others who have registered reservations about the FCC's plans. According to Bazelon, the FCC's proposed expansion and codification of network neutrality guidelines, which would include a specific rule on nondiscrimination, could slow revenue growth in the broadband business by a sixth over the next two years, and result in the loss of almost 15,000 jobs in 2011 alone, over a third of a million broadband jobs in the next ten years, and over 1.4 million jobs in the greater economy. Free Press research director Derek Turner, said, "This industry-funded research is based on deeply flawed assumptions. The Mobile Future study's central premise that Network Neutrality rules would lower broadband industry revenues by one-sixth over the next decade incorrectly extrapolates from the past impacts of telephone regulations on DSL growth, and erroneously assumes that light-touch Network Neutrality rules would have the same overstated impact. The study also completely ignores the practical reality that we have for years, and are now, living in a world of defacto-Net Neutrality, and that revenues are soaring. AT&T was put under a strict Network Neutrality regime as a result of its merger with Bell South, and its revenues saw healthy growth during that time."
benton.org/node/34689 | Broadcasting&Cable
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PHOENIX CENTER REPORT
[SOURCE: Phoenix Center, AUTHOR: Press release]
The Phoenix Center released a report claiming the profitability of the larger broadband service providers (BSPs) is generally equal to or below average for firms in the S&P 500. The report also finds that content firms like Google and EBay are substantially more profitable than BSPs, implying the BSPs are not benefiting as much as others in the Internet eco-system from the surge in broadband adoption and use. Across all measures of profitability, Google and Ebay are two-to-four times more profitable than the better performing broadband providers.
benton.org/node/34688 | Phoenix Center | read the report
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TELEVISION
BAD NEWS FOR OVER-THE-TOP VIDEO
[SOURCE: Public Knowledge, AUTHOR: Harold Feld]
[Commentary] Last Wednesday, those trying to use broadband to compete with cable video offerings (aka "over-the-top" video providers) lost the first round in a small but important case: Sky Angel v. Discovery Channel. Happily, it's only the first round. But the preliminary ruling by the Federal Communications Commission's Media Bureau highlights why either Congress or the full Commission needs to focus on the question of whether the rules that protect cable competition (or, as we in the field say, "multichannel video programming distributors" or "MVPDs" -- which includes everything from traditional cable to FIOS to satellite) will also protect competition for online providers. The language of the decision is a bit confused, but the intent seems fairly clear. The MB Order looks to the statutory definition of MVPD as one who "makes available ... multiple channels of video programming." The MB then determined that "channels" means physical channels, rather than simply multiple strams of real-time video programming. On its surface, this would exclude not merely over-the-top providers, but any IPTV provider using a single digital stream to provide multiple "channels" of video programming. That would potentially be bad news for AT&T and its pending program access complaint against Cablevision and Madison Square Garden HD, but further reading of the opinion shows that what the MB really means that it thinks broadband distribution is just too different from traditional cable or satellite subscription services to qualify as an MVPD.
benton.org/node/34705 | Public Knowledge
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MCDOWELL ON RETRANSMISSION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission member Robert McDowell suggested the FCC needs to tread carefully in its inquiry into the retransmission consent process, saying suggestions it get into the arbitration business might not sit well with the courts. He said that the 1992 Cable Act is clear that simply asking for more money does not constitute bad faith, and that the FCC is confined by statute to looking at whether retransmission negotiations are being conducted in good or bad faith. He also pointed out that the "vast majority" of retransmission deals are done without incident.
benton.org/node/34692 | Broadcasting&Cable
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U-VERSE TV DOES NOT MEET ALLVID REQUIREMENTS
[SOURCE: Multichannel News, AUTHOR: Todd Spangler]
AT&T's U-verse TV service -- as it is currently implemented -- would not be able to meet the Federal Communications Commission's proposed requirements for an "AllVid" IP gateway that would let third-party consumer electronics access pay-TV services, according to a Multichannel News analysis. AT&T's IPTV service is able to deliver a maximum of only four standard-definition and two or three HD streams to each subscriber. In its Notice of Inquiry, the FCC envisions a devise that provides at least six simultaneous video streams within the home (which would allow picture-in-picture in three different rooms). AT&T's U-verse fiber-to-the-node network architecture relies on DSL to deliver voice, video and data to the customer premises. The bandwidth limitations of DSL prevent the telco from delivering more than three concurrent HD video streams per household.
benton.org/node/34687 | Multichannel News
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OWNERSHIP
They're Calling Almost Everyone's Tune
Cash-rich tech companies avoid M&A path
Orbital Sciences buys spacecraft facility from General Dynamics
THE'RE CALLING EVERYONE'S TUNE
[SOURCE: New York Times, AUTHOR: David Segal]
Live Nation Entertainment is a colossus unlike anything the industry has ever seen. Ticketmaster has roughly 70 percent of the concert ticket market in the United States and is known for the ever-rising cost of an assortment of tacked-on fees, now as much a part of concert experience as sticky floors and shoving. Live Nation, led by Michael Rapino, 43, is a roll-up of regional promoters that now runs more than 22,000 events a year, many in the 127 amphitheaters and clubs that the company owns or operates. Total annual attendance is more than 50 million. Then there's the company's not-so-secret weapon, Front Line Management, a consortium of artist management agencies that Mr. Azoff started cobbling together in 2005. Front Line shepherds the careers of roughly 200 marquee solo artists and bands, ranging in age from Miley Cyrus to Willie Nelson and including Van Halen, Neil Diamond, Christina Aguilera, Kid Rock, Maroon 5 and the Kings of Leon. To say this new conglomerate has inspired fear in the live-concert business doesn't capture the extent of the quaking. A coalition of consumer groups and independent promoters lobbied hard against the merger, warning that Live Nation Entertainment could quietly threaten venue owners by hinting that if they dropped Ticketmaster, they would have a hard time booking Live Nation tours or Front Line talent. The coalition also said the new company would have something close to a monopolist's hand when it came to setting ticket fees.
benton.org/node/34707 | New York Times
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CASH-RICH TECH COMPANIES CASH RESERVES
[SOURCE: Financial Times, AUTHOR: Richard Waters, Chris Nuttall]
A handful of the largest US technology companies have increased their cash mountains by 40 per cent over the past year, taking their reserves to nearly a quarter of a trillion dollars, according to figures released in recent days. Conservative balance sheet management in the face of economic uncertainty and the failure of an anticipated wave of mergers and acquisitions to materialize have resulted in a massive build-up of liquidity among a small group of leading companies. The 10 largest tech companies added more than $65 billion to their reserves since the depths of the slump a year ago, according to a Financial Times analysis. That has come in spite of declining revenues over that period at companies such as Microsoft, Cisco Systems and IBM. Rising competition in some big tech markets, such as mobile computing, has also led the largest companies to hoard reserves, led by Apple, now the richest tech group with nearly $42 billion in cash and investments.
benton.org/node/34704 | Financial Times
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GOVERNMENT & COMMUNICATIONS
WHITE HOUSE EMPLOYS ADWORDS
[SOURCE: Econsultancy, AUTHOR: Patricio Robles]
[Commentary] When you do a search on Google for 'goldman sachs sec' or 'goldman sachs fraud' and even 'goldman sachs' itself, you're likely to be greeted with an ad from President Barack Obama. The ads are a very good example of a strategic paid search campaign. Here's why: 1) The keywords are carefully selected, 2) The keywords are timely, 3) The campaign isn't too broad. All in all, it's clear that the tech savvy of Barack Obama and his staff didn't end when he entered the White House. While many will debate the appropriateness of his administration's use of Google AdWords, and Wall Street reform itself, one thing is clear: politicians looking to deliver a message but who ignore the virtues do so at their own detriment.
benton.org/node/34680 | Econsultancy
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NEW MEDIA IN A DIFFERENT LENS
[SOURCE: The Hill, AUTHOR: Rep Mike Honda (D-CA)]
[Commentary] Why do I put so much emphasis on constituent communications through new technology? As a former educator, I have always believed that involving stakeholders in decision-making yields the best results. This method works in the classroom, and is essential when governing. The American people are our nation's greatest resource. Empowering the public with information can lead to better public policy. Representing the interests of constituents becomes easier when technology enables elected officials to more easily tap into the knowledge and expertise of the public. I have spent my career in Congress pushing for this and promoting technologies, developed in my Silicon Valley, which can enable citizens to have better access to their representatives, and also leading to increased transparency too. My work in the New Media field has focused on making sure that people are receiving the information they want, and in the format they want, so that they can properly express their opinions and participate in the political process. This includes involving people from all walks of life into my work. Social media has a wonderful way of involving people with varied backgrounds and interests, including communities that have language or cultural barriers. Having innovative programs is critical to this involvement. The American public now expects a new media government something that was hard to imagine even four years ago. They expect their elected officials to be responsive and dynamic. It is our job to be so.
benton.org/node/34686 | Hill, The
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LOBBYING AND SOCIAL NETWORKING
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
Why pay for a golf trip, dinner or full-page ad when you can tweet for free? The influence peddlers of K Street have discovered the power of social networking on such Web sites as Twitter and Facebook. Using their own names without mentioning that they work in public relations or as lobbyists, employees of companies with interests in Washington are chattering online to shape opinions in hard-to-detect ways. Tweets, blogs and comments on news sites can draw big audiences and popular support for a variety of causes, from tech policy to health care and energy regulation. But they provide a shade of gray in the lobbying world, where enormous influence is being exercised with few rules of engagement about spending and disclosure. "It's a bit of a Wild West, because anyone can be anyone on the Web and it's harder to tell where the line between work and the person's non-work life is," said John Wonderlich, policy director at the Sunlight Foundation. "The whole enterprise of lobbying disclosure is hard to apply hard-and-fast standards to and hard to regulate. Add to that the way we interact socially through technology, which is changing the lines around our traditional roles."
benton.org/node/34710 | Washington Post
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THINK AGAIN: THE INTERNET
[SOURCE: Foreign Policy, AUTHOR: Evgeny Morozov]
[Commentary] In the days when the Internet was young, our hopes were high. As with any budding love affair, we wanted to believe our newfound object of fascination could change the world. The Internet was lauded as the ultimate tool to foster tolerance, destroy nationalism, and transform the planet into one great wired global village. Well, the Internet as we know it has now been around for two decades, and it has certainly been transformative. The amount of goods and services available online is staggering. Communicating across borders is simpler than ever: Hefty international phone bills have been replaced by inexpensive subscriptions to Skype, while Google Translate helps readers navigate Web pages in Spanish, Mandarin, Maltese, and more than 40 other languages. But just as earlier generations were disappointed to see that neither the telegraph nor the radio delivered on the world-changing promises made by their most ardent cheerleaders, we haven't seen an Internet-powered rise in global peace, love, and liberty.
benton.org/node/34703 | Foreign Policy
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PRIVACY
SCHUMER AND SOCIAL NETWORKING
[SOURCE: The Hill, AUTHOR: Jordan Fabian]
Sen Chuck Schumer (D-NY) wrote the Federal Trade Commission Sunday asking the agency to provide guidelines to social networking sites on user's private information. He wants to ensure that private information submitted to the websites is not given away improperly to third parties. The letter comes amid reports that Facebook has begun to provide user's information to third-party sites that users used to be able to prevent from being shared. "Hundreds of millions of people use social networking sites like Facebook, Myspace and Twitter every day," Sen Schumer said. "These sites have helped reconnect old friends, allow families from far away to stay in touch, and created new friendships; overall they provide a great new way to communicate. As these sites become more and more popular, however, it's vitally important that safeguards are in place that provide users with control over their personal information to ensure they don't receive unwanted solicitations."
benton.org/node/34709 | Hill, The | Associated Press
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